Volatility fails to breakout

Whilst the indexes rolled over in the late afternoon, the VIX recovered to flat, but..completely failed to hold level, closing 3% lower, to settle @ 15.57. Until the VIX is >17.50 - when the sp'500 was trading @ 1398, all VIX upside spikes are to be dismissed as mere noise.


VIX'60min

VIX'daily

Summary

The failure to hold the low 16s was an embarrassing fail for the bears this afternoon.

There is no sign of the near term decline ending, and indeed, the VIX daily cycle looks especially bad. The lower bollinger band is a further 6% lower at 14.39. All those bulls seeking sp'1440/50s..should be looking for VIX in the low 14s leading into Christmas week.

So, as things are, there is absolutely no sign of major VIX upside, and VIX 20 looks an almost insurmountable height to reach.

More later..on the indexes